Filed under: Major movement, Earnings reports, Good news, Industry, Sotheby’s (BID), Options, Technical Analysis

Sotheby’s (NYSE: BID) reported operating revenues of $85.1 million for the third quarter on Friday, a 48% increase from the prior period. Operating losses fell to $20.9 million, a 31% improvement. The Q3 gains were primarily the result of higher auction commission revenues and private sales commissions. However, the stock fell on Friday due to worries about recent losses on underperforming auctions. Today, the stock is rebounding strongly as investors had time to digest the overall rosy picture printed in the earnings release. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on BID.

After hitting a one-year high of $61.40 in October, the stock has fallen considerably this month. BID opened this morning at $34.25. So far today the stock has hit a low of $33.76 and a high of $34.81. As of 11:10, BID is trading at $34.68, up $1.93 (5.9%). The chart for BID looks neutral and deteriorating.

Continue reading Sotheby’s (BID) rebounds from earnings dip

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This entry was posted on Monday, November 12th, 2007 at 8:30 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.